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Saturday, September 26, 2015

Though
the suspension letter issued, three of the pink-slipped individuals are out of the country….

This week saw a major shake-up at the Cooperative Bank of Oromia (CBO), a
stellar private bank, which for two years in a row ranked third in annual
profit and shareholder return in spite of joining the industry late.The National Bank of Ethiopia (NBE), the
regulatory body of the financial sector, on Wednesday issued a letter of
suspension to six individuals in the CBO's top leadership.
Accused of mismanagement of the bank’s foreign exchange operations are Abera
Deressa (PhD), Board Chairman, Tadesse Meskela, Vice Board Chairman,
Wondimagegnehu Negera, President, Abebe Tilahun and Tollosa Beyene, VPs for
Resources and Service Management, and Core Services Management, respectively
and Bantayehu Kebede, Director of International Banking Division.
The central bank is still probing into the alleged foreign currency
mismanagement that the suspended officials have been accused of.
Before NBE suspended the top officials, three of the pink-slipped
individuals in the bank's top leadership (Abera, Wondimagegnehu and Tadesse)
were already out of the country, The Reporter has learnt.
According to sources, Tadesse had resigned before the suspension letter was
issued. But no detailed information was obtained as to why he quit his board
membership position.
NBE reportedly issued the letter this week in connection with what sources
said was in violation with the foreign currency trade regulation. However, The
Reporter was unable to establish an official confirmation from the central bank
as to what led the regulatory body to write the suspension letter.
Subsequently, in an extraordinary meeting held on September 22, the
remaining members of the board of CBO elected a new acting chairman and vice
chair and appointed a new acting president and two acting VPs.
In that regard, Belachew Hurisa will serve as acting board chairman and
Dagnachew Shiferaw will be his deputy. Similarly, the board has installed
Muluneh Disasa as acting president while Fayera Ejeta and Gizaw Haile will
serve as acting VPs for Resource and Service Management and Core and
Relationship Management, respectively. Whereas, Fitsum Hawas will be acting
head of the bank's International Banking Division. Fitsum was bank's
Import-Export Department Head.
Belachew Hurrissa is an agricultural economist with 30-year experience in
the livestock industry and is Board Chairman of Elimtu Integrated SC while
Muluneh Disasa was manager of the Finfine Branch of CBO before his latest
appointment.
Fayera was the head of Resource Management and Service while Gizaw has been
responsible for Customers’ Account Service as well as Coordinator of Branch
Services.
CBO has managed some 475.6 million birr before tax in profit in 2013/14 and
the latest financial report of the bank has indicated that it amassed some 602
million birr profit for 2014/15 fiscal year.
However, the highest portion of bank’s 2013/14 profit was earned from
international banking service.It is not the the first time when top bank
officials were dismissed in connection with foreign currency exchange
mismanagement. A few years ago, Leykun Berhanu, the then president of Awash
International Bank and Mitiku Abeshu, vice president were dismissed and charged
with foreign exchange trade mismanagement.Source ( Reporter